© 2016 The Texas Lawbook.
By Natalie Posgate
(June 23) – Since the capital markets dried up last July after the lingering low oil prices finally took their toll, equity and debt offerings became few and far between. Witnessing an initial public offering by an energy company in these times is comparable to seeing a unicorn.
But an IPO filed Wednesday may cause financial and legal advisors representing these energy companies to soon rejoice over a potential oasis in the IPO dry spell.
Denver-based Centennial Resource Development, an upstream oil company backed by Irving-based Natural Gas Partners, filed for an IPO with the U.S. Securities and Exchange Commission. It is one of the only IPOs led this year by Texas lawyers. The SEC filing said the offering could raise up to $100 million for the company.
Capital markets lawyers Doug McWilliams and Chris Schmitt from Vinson & Elkins’ Houston and Dallas offices are leading the IPO for Centennial, according to the company’s S-1 filing. Fellow Houston attorneys Gerry Spedale and A.J. Ericksen of Baker Botts are leading the offering for the underwriters, Credit Suisse and Barclays.
Centennial’s IPO will help the company fully repay its $65 million term loan debt and will help fund the company’s remaining net proceeds for its 2016, 2017 and 2018 capital expenditures, as well as fund general corporate purposes, Centennial said in its IPO filing.
V&E announced its involvement in the closing of another IPO earlier this month for Reata Pharmaceuticals, an Irving-based clinical-stage biopharmaceutical company. The IPO raised nearly $70 million for the company. Schmitt also co-led that IPO, along with Dallas V&E partner Robert Kimball.
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